When voters approved Proposition 64 to authorize adult use of cannabis in the state, we expected it would produce huge tax revenues that would fund critically needed programs in schools and public safety agencies. In practice however, because of local bans on cannabis sales and slow licensing processes, tax revenue has been half of what was projected.

Assembly Bill 1356, authored by Assembly Member Phil Ting, D-San Francisco, would help fill this gap and revive the intention of Prop. 64.

Initial projections estimated $643 million in new tax revenue for the first year of sales alone, eventually surpassing $1 billion in following years and reaching $11 billion by 2030. Yet in February of this year, the California Department of Tax and Fee Administration reported collecting just $345.2 million since Jan. 1, 2018.

The proprietor of a medical marijuana dispensary prepares his monthly tax payment, over $40,000 in cash, at his Los Angeles store. Proposals in Congress to ease the federal ban on marijuana could encourage more banks to do business with cannabis companies, but so far have gone nowhere. The cannabis trade remains a cash business.

Photo: Jae C. Hong / Associated Press 2017

Cannabis businesses still lack legal access to banking — something I’ve pushed Congress and the Legislature to act on — but that is just one impediment to collecting the tax revenues Prop. 64 promised. One of the major problems falls on the patchwork state and local licensing that allows municipalities to prohibit cannabis sales in their jurisdictions. In fact, about 77% of California cities and counties have banned cannabis retail businesses — despite the fact that 57% of the electorate approved Prop. 64 at the ballot box.

Walnut Creek assistant city attorney Lindsay D’Andrea led a City Council discussion about implementing Prop. 64 shortly after the initiative was passed by 57 percent of voters. Two years later, a majority of cities and counties have either not licensed or outright banned cannabis dispensaries and cultivation. Promised tax revenues are half of what initiative backers promised.

Photo: Peter DaSilva / Special to The Chronicle 2017

Lackluster tax revenues can be tied to the slow rate of licensing by local jurisdictions. The state originally estimated nearly 6,000 licenses would be issued in the first two years of legalization. According to recent estimates, the Bureau of Cannabis Control has issued less than 10% of that original estimate.

Local prohibitions on cultivation, sale and delivery dim the prospects for valuable programs and services Californians were promised by Prop. 64.

Local prohibitions also deny earning opportunities to small business owners who have invested years and thousands of dollars in preparation for a legal cannabis marketplace.

Further, thousands of Californians such as seniors, people with disabilities and veterans who rely on cannabis for relief are left with limited access.

Californians passed Prop. 64 to end the harmful “War on Drugs,” to eliminate the black market and replace it with a legal framework that provides safe, reliable access to cannabis for medical and recreational users while supplying well-paying jobs. The best way to solve this shortfall is to start issuing licenses to meet market demand.

That’s why I’m joining with patients, veterans, labor unions and business groups in supporting AB1356, a practical and common-sense approach to improve patient access to medicinal cannabis and make Prop. 64 work in the way voters intended.

AB1356 respects the will of local voters, requiring jurisdictions where Prop. 64 passed with 50% of the vote to issue one cannabis dispensary license for every four liquor store licenses, or one cannabis license per 10,000 people — whichever is lower. It preserves the ability of localities to choose which cannabis retail businesses will be granted licenses.

If municipalities believe residents no longer support legal access in their communities, then they can place an affirmative ban on the ballot at the next scheduled election.

By protecting the will of the millions of Californians who voted for Prop. 64, AB1356 ensures that patients with chronic illnesses do not have to travel long distances for the medicine they need, combats the illicit market with safe legal options, and supports a new sector of burgeoning small businesses.

Ultimately, a fully functional market has real potential to generate $1 billion or more in revenues each year to support vital state services and programs on which Californians rely. That’s too much revenue to leave hanging in the balance.

Fiona Ma, a certified public accountant, is the 34th treasurer of the State of California.